Budget 2011 Announcement

MEASURES RELATED TO SMES

Entrepreneurship and Capacity Building

•Entrepreneurship Enhancement Training Programmeto train 500 new technopreneursand attract more angel investors (under Cradle Fund Sdn. Bhd).

•The new Insolvency Act to assist entrepreneurs who are blacklisted and unable to conduct businesses or apply for loans through a relief mechanism and higher bankruptcy threshold.

•The Industrial Skills Enhancement Programmeand training of ICT graduates are aimed at enhancing employability of graduates and non-graduates, while the 1Malaysia Training Programmeis aimed at up-skilling and re-skilling in soft and technical skills.

Cost of Doing Business

•The Government to continue with the Distribution of Essential Goods Programmeto standardisethe prices of essential items nationwide.

•The MyCoIDGateway to be extended to more Ministries and Agencies to enhance the Government delivery system.

•The property registration process will be reduced from 30 days to 1 day.

Access to Financing Technology

•RM100 million start-up fund to be established under the Malaysian Technology Development Corporation(MTDC) to provide soft loans, whereby repayments to be made only after the company generates income,

Promoting New Areas of Growth

•In the E&E sector, RM857 million is allocated for local companies to invest in high value-added activities, particularly in Penang and Kulim,

•In green technology, a number of incentives have been provided including import duty and sales tax exemption on equipment for generation of energy from renewable sources and energy efficiency,

•In agriculture, the Government will develop infrastructure to encourage farmers participating in high value activities (i.eswiftlet, seaweeds, ornamental fish) including integrated aquaculture zones, enhancing drainage, diagnostic lab, International Centre for Crops of the Future and to foster partnerships between small-scale fruits and vegetables farmers with anchor companies. In food production, investors will be given income tax deduction, while the companies will be given income tax exemption. Support will also be given to paddy farmers and fishermen,

•In tourism, measures to promote activities include beautification and infrastructure facilities, eco-nature resort and abolition of duties on branded items will have spillover effects on SMEs,

•In the palm oil, both promotion of upstream (replanting fund of RM297 milion) and downstream oleo chemical activities will benefit SMEs,

•MY Creative Content Programmewill encourage development of the local content industry,

•Sultan Abdul Aziz Shah Airport, Subangwill be developed as a centre for training and maintenance and overhaul of aircrafts,

•Infrastructure support will be given to the economic corridors,

•An allocation of RM411 million will be given to encourage research, development and commercialisationactivities and a Special Innovation Unit (UNIK) will be established as a one-stop centre to formulate policies and strategies for a conducive ecosystem to drive innovation,

•A sum of RM200 million is allocated to purchase creative products such as high quality locally-produced films, dramas and documentaries,

•Encourage participation of women in workforce and businesses through Single Mother Skills Incubator Programme, Small Office Home Office programmeand flexible working hours,

•To strengthen the wholesale and retail sector, the Retail Shop Transformation Programme(TUKAR), Automotive Workshop and Community Market projects will be introduced to upgrade and modernisefacilities,

•For small contractors, RM500 million will be provided under ProjekPenyelenggaraanAsetAwamto repair and upgrade public amenities.

Foreign workers can get medical cover from 32 insurers

Akhbar : THE STAR : NATION

Monday November 29, 2010

Foreign workers can get medical cover from 32 insurers

KUALA LUMPUR: Thirty-two registered insurers have been picked to provide medical coverage for foreign workers starting Jan 1.

Deputy Human Resource Minister Datuk Maznah Mazlan said action would be taken against employers employing uninsured foreigners while the work permits
of their workers would not be renewed.

She said the ministry would hold dialogues with stakeholders to explain the new ruling. She was speaking to reporters after launching the Hitachi
Charity Flea Bazaar here yesterday.

The Government recently announced the mandatory medical insurance coverage for foreign workers as the foreigners had left government hospitals with
unpaid bills amounting to RM18mil.

It has fixed the annual insurance premium at RM120 per worker. — Bernama

Bosses, staff may choose to pay premium

Akhbar : NEWS SUNDAY TIMES : NEWS
TARIKH : 28/11/2010
Bosses, staff may choose to pay premium


MALACCA: The premium for the health insurance for foreign workers may be borne by either the employers or their workers, except for workers in certain
sectors.

Human Resources Minister Datuk Dr S. Subramaniam said the government would leave the decision to the employers and their employees.

However, for workers in some sectors, including domestic helpers and those employed in agriculture-related work, the employers would have to pick up
the tab.


Dr Subramaniam said the Health Ministry made the decision to impose health insurance on foreign workers because of the high cost incurred by the
government when they failed to settle their medical bills at public hospitals.

Land transfer done in a day, thanks to e-tanah

THE e-tanah online system, which allows the transfer of land titles within a day, has helped to improve revenue collection, Deputy Natural Resources and Environment Minister Tan Sri Joseph Kurup said.

He said the ministry had collected RM960,000 through the online system from Oct 1, 2007 to Oct 4.

Kurup said the programme was first used in Penang in 2005, in which all land office in the state used the electronic system for land transaction matters.

He added the system had been extended to Malacca and Ne gri Sembilan from December 2008.

Kurup told Azan Ismail (PKR-Indera Mahkota) that the objective of the system was to improve efficiency, transparency and the delivery and to establish a single database for information on land matters.

“Such a programme will also reduce bureaucracy,’’ he said in reply to points raised during the debate on the ministry at the committee stage.

He added the system was being monitored by the Malaysian Administrative Modernisation and Management Planning Unit (Mampu).

Kurup said the e-tanah application also took into account of the security features for the interest of land owners.

Among the security features were the implementation of digital signatures, security posture assessment, while a disaster recovery centre was set up to provide support to the main database.

On flash floods, Kurup said allocation to counter flash flood problems came under the purview of the National Security Council.

He also said currently, there was no allocation to prevent soil erosion at the beaches in Port Dickson and Sabak Bernam.

The Department of Drainage and Irrigation would apply for the allocation from the Government, he added.

http://thestar.com.my/news/story.asp?file=/2010/11/25/parliament/7497391&sec=parliament

MERGERS AND AFFILIATIONS (M & A) LISTING

With the evolutionary changes in the accounting profession, it is timely for member firms to group together and take advantage of the many opportunities in a strong affiliation arrangement for growth potential. Smaller firms should seriously consider looking towards merging or at the very least, affiliating with their peers.

To encourage such an initiative, the Institute has an online register known as the Member Firms Merger and Affiliations Listing. This portal serves as a platform for member firms who would like to seek local mergers or affiliations, to advertise their intention through the e-portal. Likewise, interested firms could identify partners that meet their profile for alliances, mergers and affiliations through the e-portal. This service is provided on a complimentary basis.

Member firms who are interested to register on this listing are requested to provide relevant information in the Institute's website at http://www.mia.org.my/e-MERGER/. Member Firm Number and Password are required in order to be listed on the Merger and Affiliations Listing. To request for the password, please contact Nithya from MIA Help Desk at 03-2279 9308 or e-mail at password@mia.org.my.

The Institute reserves the right to edit the information provided by the firm before it is posted on the listing. However, the Institute will not review the information posted for accuracy, correctness or completeness and as such, any person who reviews and relies on such information will do so at their own risk.

The Institute, the officers, the employees or agents of the Institute disclaim all and any responsibility or liability to any person or entity for any errors or omissions in respect of the information contained in the listing and or for anything done or omitted to be done by any such person in reliance whether wholly or partially, upon the whole or any part of the contents of the same.

Please note that incomplete information on the form will not be processed and a new submission will have to be submitted before it can be processed. All information will be tracked for a period of three (3) months and thereafter, such information will be archived and will then not be accessible by the public. A new submission will have to be done to enable continuous posting on the Institute's website. By submitting the form to the Institute, the firm is deemed to have agreed to the abovementioned terms and conditions.

For more information on the Mergers and Affiliations Listing, please contact Public Practice Department at 03-2272 1501 or e-mail practice@mia.org.my.

Introduction of e-Ledger

The Inland Revenue Board (IRB) has introduced the e-Ledger facilities to enable taxpayers to check on the correctness of their personal particulars such as address and bank account number and whether their records of tax transactions with the IRB, namely, assessments, payments and repayments, have been updated. Members may click here to see the main page and the accounting presentation. You may also view the Frequently Asked Questions on e-Ledger at the website of the Institute at http://www.ctim.org.my/technical_techdev_direct.asp or at the website of the IRB at https://elejar.hasil.gov.my/index.php?option=com_content&task=view&id=20&Itemid=72.

Q1: What is e-Lejar?
A:
The e-Lejar is a facility provided to the taxpayer to check:
1. Personal details
2. Ledger transactions
3. The current tax balance position

Q2:What is the purpose of e-Lejar?
A:
1. The taxpayer is able to determine whether his personal details such as address and bank account number had been recorded correctly by IRBM.

2. Through the display of the ledger, taxpayer can check whether records of tax transactions namely assessments, payments and repayments have been updated. As an example, to confirm whether Monthly Tax Deduction (MTD) payments deducted by the employer have been received and credited by IRBM. It is also to check whether tax assessment submitted through IRBM’s e-Filing has been updated in the ledger.

3. Through the display on the current tax balance position, taxpayer can distinguish whether he has a debit or credit balance. Debit balance means an amount of tax is still outstanding while credit balance means an amount of tax overpaid by the taxpayer.

Q3:
Who can access e-Lejar?
A:
Currently, e-Lejar is only accessible to individual taxpayers who have e-Filing’s ID.

Q4: What is the type of tax information displayed in e-Lejar?
A:
A: The e-Lejar displays two (2) types of tax information - Income Tax (IT) in IT Ledger and Real Property Gains Tax (RPGT) in RPGT Ledger.

IT Ledger
IT Ledger displays Income Tax transactions updated in the current calendar year and previous year. The ledger is divided into Account 1 and Account 2.

- Account 1 is a tax account. It displays all transactions of taxation and updates according to the calendar year. The last balance in Account 1 is the taxpayer’s current balance for the year. This current balance determines whether there is still any amount of tax unpaid with IRBM.

- Account 2 is a tax installment payment account. It shows the payment of tax installments such as MTD payments made and updated according to calendar year. The balance in Account 2 is the amount of remaining balance of installment payment which is still not to be utilised as the tax assessment is not yet ‘deemed’ or posted.

RPGT Ledger
RPGT Ledger will show the Real Property Gains Tax (RPGT) transactions. However, this Ledger will not be displayed if the taxpayer has no RPGT transactions.

Q5: What does ‘dt’ and ‘kt’ refer to?
A:
‘dt’ denotes Debit, while ‘kt’ denotes Credit.

Q6: What is the difference between the balance shown in Account 1 in comparison with Account 2 in the IT Ledger?
A:
The balance in Account 1 shows the current balance of tax account.
If Account 1 shows a debit balance, it denotes that the cumulative amount of tax liability is greater than the total tax payment made. It means, the taxpayer has an outstanding amount of tax that is required to be settled. Taxpayer is advised to liaise with the respective IRBM branch to settle the outstanding amount. However, this amount of tax is not inclusive of any tax installment schemes that have been approved by IRBM but payment has yet to be made.

If Account 1 shows a credit balance, it denotes that the tax payment has a surplus compared to the tax liability. However this balance may still be subject to any future additional assessment. If there were no further additional assessment raised, the taxpayer is entitled for a refund. However, the final amount of refund is subject to IRBM’s approval taking into consideration other technical implications.

The balance in Account 2 shows the amount of the remaining balance of installment payments which is still not to be utilised because the assessment is yet to be ‘deemed’ or posted.

The tax installment payment consists of:-
1. MTD Payments for individuals;
2. Tax Installment Payments for Companies / Businesses (CP204/CP500); and
3. Composite Installment Payments.

Total amount of installment payments in accordance to year of assessment in Account 2 will be transferred to Account 1 when the assessment for the similar year is posted in Account 1.

If there were no assessment posted in Account 1, the unutilised cumulative installments in Account 2 will be carried forward to the preceding year.

The followings are situations when assessment is yet to be ‘deemed’ or posted in Account 1 such:-

1. Return Form has not been issued, as such the last date to submit Return Form has not been determined; or

2. Return Form is not submitted to IRBM after due date; or

3. Return Form was submitted within time, but assessment has not been posted / updated in Account 1.

Q7: Apart from determining the balance in Account 1 and 2 of the IT Ledger, what other information can I obtain?
A:
Taxpayer is able to verify the following:-

Account 1 – Tax transactions such as additional and reduced assessments, tax refunds and accounting adjustments.

Account 2 – Detailed payment transactions such as payments furnished by employers on MTD which have been received and updated in the IT Ledger.

Q8: There are 2 balances for each of Account 1 and 2 for the year 2010 and 2009 in IT Ledger. Why?
A:
The IT ledger for the year 2009 shows the transactions in the year 2009. This is for purposes of records only. Whereas the balance shown in the current year 2010 shows the current tax position of the taxpayer.

Q9: If I notice any information in the e-Lejar that is incorrect, what should I do?
A:
Taxpayer is advised to contact the nearest IRBM branches or Customer Care Center at 1-300-88-3010

Business registration reduced to one day via online

KUALA LUMPUR: Those who want to set up businesses can now simultaneously register with five government agencies online and complete the process within a day compared to 11 days previously.

The Malaysia Corporate Identity Number or MyCoID’s gateway system which was launched yesterday would also see information being transferred electronically without requiring a person to physically head to the five government agencies to register their business as is the current practice.

Prime Minister Datuk Seri Najib Tun Razak said the implementation of the MyCoID gateway system would help boost the country’s competitiveness globally, improve the delivery system and reduce the number of processes from nine to one.

“The concept is easy, quick and effective. Registration with various agencies is done through a one-touch point,” said Najib, whose speech was read out by Domestic Trade, Cooperatives and Consu?merism Minister Datuk Seri Ismail Sabri Yaakob.

Najib said the system would also help improve Malaysia’s ranking with the World Bank’s “Doing Business” category from the current 23rd spot to 17 by next year.

On the price of RON97 petrol, Ismail said: “There is no reason for the people to panic or worry as over 90% of motorists use RON95 which is still at RM1.85 per litre,” he said yesterday after launching the Malay?sia Corporate Identity Number or MyCoID’s second phase gateway system.

Ismail Sabri was commenting on the increase of RON97 petrol by 5 sen to RM2.15 per litre effective on Tuesday.

He also said the RON97 pricing would change every first of the month with oil companies having the option to increase the full amount or absorb some of the cost to create a healthy battle with their competitors.

On whether the prices of RON95 would be increased, Ismail Sabri said he did not expect it to increase this year, adding that such decisions were subject to Cabinet approval.

http://thestar.com.my/news/story.asp?file=/2010/11/4/nation/7359289&sec=nation

IRB introduces E-ledger Services for Tax Payers

IPOH, Nov 1 (Bernama) -- Tax payers can now check their personal tax details and transactions through the e-lejar facilities and services provided by the Inland Revenue Board (IRB).


IRB Chief Executive Officer Tan Sri Hasmah Abdullah said starting today, tax payers can check whether records of tax transactions namely assessments, payments and repayments have been updated, determine whether personal details such as address and bank account numbers had been recorded correctly.


"E-Ledger will display tax information, real property gain for the current and previous year. Taxpayer can distinguish whether he has a debit or credit balance and check whether tax assessment submitted through IRB's e-Filing has been updated in the ledger," Hasmah told reporters after launching e-lejar here Monday.


Hasmah added that the e-ledger service would assist the IRB to process rebate for tax payers more effectively and efficiently since the bank account numbers of contributors can be obtained from the e-filing system.


Tax payers must not only check on the information on tax details but must also update or check their personal details like bank account number and address, said Hasmah.


Currently, e-Ledger is only accessible to individual taxpayers who have e-Filing identification numbers.